Transfer power or risk more guerilla attacks: Annan

The United Nations' future in Iraq was thrown into doubt after Secretary-General Kofi Annan rejected United States proposals on the role it should take.

Mr Annan stressed to the 15-member Security Council on Thursday that he could not accept the terms of a new US draft resolution, which did not incorporate his suggestions on how to handle the eventual transfer of political power in Iraq.

Diplomats said he bristled at taking on responsibilities, given the dire security situation in Iraq, where two suicide bombings at the UN's Baghdad office have killed 23 people since August.

Mr Annan said his proposal to let Iraqis form a government before writing a constitution and holding new elections, could help stem the guerilla-style attacks against the US occupation.

But the latest US proposals call for writing a constitution first - a process that would take months - before a "progressive" handover of political power to Iraqis.

"You get rid of the idea that it is an occupation and cut back on the resistance," Mr Annan said. "That doesn't mean that the international community walks away.

"Obviously it's not going in the direction I had recommended."

One diplomat said Mr Annan saw no way for "two powers" to be in charge and that it would be very difficult for the United Nations to take part while the US occupation maintains its hold.

Russia, France, Germany and other Security Council members held similar positions, arguing a symbolic end to the occupation was needed to stabilise the volatile country.

According to diplomats, France's ambassador, Jean-Marc Sabliere, told council members during closed consultations that the new text "does not meet our expectations".

No Security Council member has threatened to veto the resolution but France has said it might abstain. Negotiations continue on Monday.

The main purpose of the new resolution is to transform the military operation into a UN-authorised multinational force under American command.

This provision is aimed at attracting contributions from nations wary of sending soldiers as part of an occupation force, although volunteers appear to be scarce.

The new resolution would ask the UN to assist the US-appointed 25-member Iraqi Governing Council, in co-operation with the occupation authorities, in preparing a constitution and holding elections.